NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Australian winemakers urge PM to mend fences with China

Published 06/06/2018, 11:09 am
Updated 06/06/2018, 11:10 am
© Reuters.  Australian winemakers urge PM to mend fences with China
TWE
-
QAN
-

By Colin Packham

SYDNEY, June 6 (Reuters) - Australian winemakers will on Wednesday hold an emergency meeting with the government as frustration grows that Canberra is unable to break an impasse with China over trade restrictions triggered by a souring of bilateral relations.

The industry body said Prime Minister Malcolm Turnbull needed to travel to China as soon as possible to put relations back on track and remove blockages on wine imports, a trade worth A$848 million ($647 million) to Australia last year.

As many as six Australian wine companies, including Treasury Wine Estates Ltd TWE.AX - the world's biggest-listed winemaker - have faced delays getting products through Chinese customs this year amid the diplomatic rift between Canberra and Beijing. Battaglene, chief executive of the industry body, Wine Federation of Australia, said company representatives would hold talks with Assistant Minister for Agriculture Anne Ruston.

"There is a meeting today with Senator Ruston, where it will be suggested that the prime minister travel to China," he told Reuters.

"There is obvious concern about China from the government but for us, we must all be aware that they are an extremely important strategic partner for us."

While the industry has not put a value on the exports languishing at China's ports, investors are concerned at the prolonged impasse as Australian wine companies have until recently benefited from an insatiable thirst for wine among China's growing middle class.

Treasury Wine's share price has dropped 9 percent since the customs delays were revealed on May 17.

Sino-Australian relations have soured in recent months, just two years into a free trade pact, after Canberra accused Beijing of interfering in its domestic affairs.

Turnbull referenced "disturbing reports of Chinese meddling" when he announced plans in late 2017 to introduce legislation to limit foreign influence, including a ban on offshore political donations. denied the allegations, and lodged a formal diplomatic protest.

The meeting of Australian wine companies comes just a day after senior government officials accused China of applying undue political pressure on Qantas Airways Ltd QAN.AX to change its website to refer to Taiwan as a Chinese territory. and democratic Taiwan is claimed by Beijing as a Chinese territory, and is China's most sensitive diplomatic issue and a potential military flashpoint.

($1 = 1.3108 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.